$10 Million in Funding to Support Off-Grid Communities

Proparco recently made a $10 million subscription to a green bond with the proceeds to be lent to GreenLight Planet (now Sun King), one of the leading solar-home system actors in sub–Saharan Africa, to support its activity in providing access to energy for off-grid customers in underserved African markets.

The facility was arranged by Symbiotics Investments and has been issued by the innovative MSME Bonds SA platform.

Since 2020, Symbiotics Investments has been offering to its investees the possibility of issuing green, social and sustainability bonds via its MSME Bonds SA platform reducing costs and providing access to a wider range of institutional investors. Since inception, the MSME Bonds platform has issued 309 impact bonds for a total amount of $2.67 billion, including 33 sustainable bonds through the Green Pass-Through Notes Issuance Program, for a total amount of $329 million.

The company says the green bond fits perfectly in Proparco‘s focus on Africa as it contributes to the consolidation of players able to answer the main developmental challenges in sub-Saharan Africa.

“We are pleased to strengthen our partnership with recognized players such as Symbiotics Investments and GreenLight Planet. Together, we will work effectively to improve access to clean energy in Africa. As highlighted at COP27, this remains a top priority for the continent, where 570 million people still live without proper access to electricity,” said Françoise Lombard, Chief Executive Officer of PROPARCO. “Overall, we must collectively increase our commitments in emerging markets to ensure access for all to affordable, reliable, sustainable and modern energy by 2030. This project echoes our ambitions well with regards to this goal and is fully in line with Proparco’s strategic priorities and climate mandate,” she added.

Yvan Renaud, Chief Executive Officer of Symbiotics Investments, welcomed this subscription and the first green bond structured for Proparco. “Symbiotics has been an early supporter of access to clean energy and a historical partner to Greenlight Planet. Proparco’s investment in this bond is a great encouragement for us to pursue with our engagement to offer sound green bond opportunities to institutional and private investors.”

GreenLight Planet provides access to renewable energy and mitigates CO2 emissions by replacing kerosene lamps and diesel generators with off grid solar lanterns and solar home systems (e.g., bulbs, radio, fans, TV, etc.). So far, 7.3 million kerosene lanterns have been replaced to date and 22.9 million tons of CO2 have been avoided by GreenLight Planet. This project will help avoid 102,976 tCO2/year. Thanks to the PayGo credit facilities offered by GLP to unbanked and low-income populations, the project will also favor financial inclusion, giving access to PayGO credit facilities to 2.67 million people.

This project will thereby contribute to SDGs #7 (clean energy), #8 (decent work and economic growth) #9 (infrastructures), #10 (reducing inequalities), and #13 (climate action).

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